For single filers there is a range where one is not permitted to deduct a traditional IRA contribution but is permitted to make a Roth IRA contribution.
The NIA moved to the Roth IRA simply becomes earnings in the Roth IRA. If you take Roth earnings out before you meet the requirements for Roth IRA distributions, the distributed earnings are subject to income tax and, if you are under age 59½, to an early-distribution penalty.
